Former Bank of America Banker Charged in $18.5M Insider Trading Case
Synopsis
The SEC alleges Jason Satsky, formerly the bank’s co-head of Americas power and renewable energy banking, passed confidential merger information to former colleague Gavin Wolfe, who profited $18.5 million from the trade.
The U.S. Securities and Exchange Commission (SEC) has charged a former senior Bank of America investment banker with insider trading, alleging he tipped a longtime friend about a potential merger that later generated $18.5 million in illegal profits.
Jason Satsky, who was once co-head of Bank of America’s Americas power and renewable energy banking team allegedly shared confidential information with Gavin Wolfe about the planned acquisition of South Jersey Industries, an energy holding company the bank was advising.
According to the SEC, Wolfe used the information to buy more than 2.2 million shares of South Jersey Industries for about $53 million. He later made a 36% gain after the company announced an $8.1 billion buyout on February 24, 2022.
Alleged Tip Happened During College Basketball Game
The SEC alleges Satsky and Wolfe communicated several times about the potential acquisition in late 2021.
One of those meetings reportedly took place at Madison Square Garden while the two men and their wives attended a nationally televised college basketball game between Duke and Kentucky. Satsky had access to luxury box seats through Bank of America.
Wolfe, who runs investment firm Evergreen Capital had been friends with Satsky for more than 20 years. He previously worked as a senior power and renewable energy banker at Credit Suisse before joining Bank of America with Satsky in 2012.
The SEC is seeking to recover Wolfe’s alleged illegal gains. It is also seeking civil penalties and officer-and-director bans against both men.
Both Men Deny the Allegations
Satsky, 59, strongly denied the SEC’s claims through his lawyer, Robert Anello, saying he never provided Wolfe or anyone else with material nonpublic information about South Jersey Industries.
Wolfe, 55, also denied the allegations. His lawyer, Reed Brodsky said Wolfe would “vigorously defend himself” and argued that his client bought the shares based on an independent investment thesis.
Bank of America has not been accused of wrongdoing. The bank confirmed that Satsky no longer works there after his termination in March 2025.
The case highlights the serious legal risks faced by investment bankers who have access to confidential deal information, particularly when that information is shared with personal contacts before major corporate announcements.
Source: Reuters
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
